Finding Text
Finding No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-003. Criteria: HUD regulations require: • Verification of initial income through the use of EIV reports within 90 days of move-in; • Move-in unit inspection to be performed at move-in. Statement of Condition: Of the tenant files selected: • Four tenant files did not contain verification of the initial income through the use of EIV reports; • The move-in unit inspection was performed two months after the move-in date for one tenant. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. In addition, the Project did not follow the HUD regulations in relation to uni tinspections. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Unable to determine and assess whether a unit was move-in ready. Auditor Non-compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that all required tenant eligibility steps are performed in accordance with HUD regulations, utilize the EIV system for income verification, inspect units timely, and maintain all supporting documentation in the tenant files. Response Indicator: Agree. Completion Date: 9/30/2026 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly training procedures.